The FTC also alleges that MoneyGram failed to record the complaints it received about fraud-induced money transfers and share that information with the Commission, violated the order by failing to properly vet its agents on how to detect consumer fraud and prevent it, and failed to block individuals the company knew about when their computerized monitoring system malfunctioned for an 18-month period in 2015 and 2016.
In addition to the $125 million dollars settlement, MoneyGram has also complied with an expanded order that will overrule the 2009 order. These modifications include blocking money transfer of known fraudsters and providing refunds as well as enhanced due diligence, investigative and disciplinary requirements.
Through the Department of Justice’s victim compensation program, the $125 million settlement paid by MoneyGram International will be distributed amongst fraud victims.
